Yahoo Finance Trupanion Insider Ups Holding During Year
From what we can see, insiders were net buyers in Trupanion, Inc.'s (NASDAQ:TRUP ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Trupanion
Trupanion Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Founder Darryl Graham Rawlings bought US$500k worth of shares at a price of US$24.14 per share. Even though the purchase was made at a significantly lower price than the recent price (US$29.66), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Trupanion is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Trupanion Insiders Bought Stock Recently
At Trupanion,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, Founder Darryl Graham Rawlings bought US$500k worth of shares in that time. But we did see insider selling worth US$145k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Trupanion insiders own 5.5% of the company, worth about US$69m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Trupanion Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Trupanion shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Trupanion. Case in point: We've spotted 1 warning sign for Trupanion you should be aware of.
But note: Trupanion may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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